German logistics firms face insolvency surge as costs and delays bite

Germany’s transport and logistics sector is facing growing financial strain. Rising costs, delayed payments, and global disruptions are pushing many firms towards insolvency. Industry experts warn that prolonged instability could halt growth entirely by next year. The economic outlook for German transport and logistics companies has worsened in recent months. According to credit insurer Atradius, one in four small and medium-sized firms now faces a high risk of failure. In 2024 alone, 469 logistics businesses filed for insolvency—a 5.6 percent rise compared to the previous year.

Cash flow problems are adding to the pressure. Many firms must cover fuel expenses upfront but wait around 60 days for client payments. Slim profit margins and soaring diesel prices have made operations even more difficult. Global forecasts have also been revised downwards. After earlier optimism, the sector’s growth for 2025 is now expected to reach just 2.4 percent. Atradius warns that if disruptions in the Strait of Hormuz last beyond six months, growth could grind to a halt. Industry groups are calling for urgent government action. Proposals include cutting energy and electricity taxes, scrapping double CO₂ charges, and introducing short-term financial relief. However, existing support measures have so far failed to ease the burden on struggling businesses. The knock-on effects are already being felt. Rising energy costs are pushing food prices up by as much as ten percent in the coming months.

Without significant intervention, the transport and logistics sector could see further insolvencies. Higher operational costs and delayed payments are squeezing smaller firms the hardest. Meanwhile, consumers may face steeper prices for essential goods as energy and transport expenses continue to climb.